So now that the housing double dip is officially here

Quote Originally Posted by wallstreetcappers:

Oh how a good thread goes bad so easily.

I love how the target is placed on the back of liberals, minorities and low income people, how short sided and wrong.

The banks were not forced to write 90 to 100 dollars in loans relative to cash on deposit, the banks were more than happy to slurp up origination fees and underwriting fees, then chop all the loans up and profit of selling them to all and any while outright LYING about the credit strength and even betting against the very products they duped to others.

Maybe my math is bad, but a lower income homeowner who defaults on a 200k loan, with it being sold for 100k is a lesser loss than the second tier buyer who bought a 750k house and it auctions at 350k. The foreclosure market is BUSTING out for those bread and butter homes you are bashing, while the higher end properties sit in short sale for a year or more. THAT is the state of the current market.

Keep placing blame on minorities and shield the banks and lenders and builders, that makes tons of sense.

Quote Originally Posted by LeafsNeedD:

Low interest rates are what created this mess so when all else fails just repeat what didn't work in the past. 

Quote Originally Posted by vanzack:

A lot less owners, and a lot more renters. 

Or, banks are going to have to lower their standards.  Banks are in the business of lending money, what is going to happen when they run out of 800 / 20%ers?  They are either going to have to find another way to make money other than lending, or they are going to have to reduce their standards and start welciming in the new normal - the 650 / 5% ers.

Otherwise, we are going to return to a nation of wealthy landowners and masses of renters.

It is so FUBAR right now.

Quote Originally Posted by vanzack:

Agree with all of this except the perception I have that you would be willing to eat the loss on your house.

If the housing market continues to crash, wont there be a point where you decide it is not coming back, you are paying way too much compared to market price for your mortgage, and just make a business decision to walk away?  Thats the part that is coming in droves - people just walking because housing values are plummeting and people are realizing "hey, my neighbors house is the same as mine and I can pay 1k a month for his, and I am paying 2k for mine!"

I just dont think you should be "morally" stuck to paying your mortgage, or eating your loss.  Fuck it.  Everyone else is.  Why should you be the only sucker who plays by the rules and pays the cost?  In 5 years, you willl be in the minority if you have a credit score above 600.  Why be the guy with the 800 who has paid hundreds of thousands of dollars to maintain it for nothing?

Quote Originally Posted by be easy:

so the 10 year is back right about where it was a year ago at this time.  Anyone else think we might see it fall back down and re-test the 2.3% lows of early October '10?  That's almost a 30% drop from where it is today

what's the best way to bet this scenario?

does direxion have a 3x ETF to bet rates drop

Quote Originally Posted by vanzack:

Agree with all of this except the perception I have that you would be willing to eat the loss on your house.

If the housing market continues to crash, wont there be a point where you decide it is not coming back, you are paying way too much compared to market price for your mortgage, and just make a business decision to walk away?  Thats the part that is coming in droves - people just walking because housing values are plummeting and people are realizing "hey, my neighbors house is the same as mine and I can pay 1k a month for his, and I am paying 2k for mine!"

I just dont think you should be "morally" stuck to paying your mortgage, or eating your loss.  Fuck it.  Everyone else is.  Why should you be the only sucker who plays by the rules and pays the cost?  In 5 years, you willl be in the minority if you have a credit score above 600.  Why be the guy with the 800 who has paid hundreds of thousands of dollars to maintain it for nothing?